Rising inflation causes quantity demanded to decline, because ________
A) the central bank raises the nominal interest rate by more than the increase in expected inflation
B) households and businesses are reluctant to spend when prices rise
C) higher inflation causes the IS curve to shift to the left
D) all of the above
E) none of the above
A
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In the Baumol-Tobin analysis of transactions demand, scale economies imply that an increase in real income increases the quantity of money demanded ________, while an increase in the price level increases the quantity of money demanded ________
A) proportionately; less than proportionately B) more than proportionately; proportionately C) less than proportionately; proportionately D) proportionately; more than proportionately
How would you apply the scientific process to the question of why men typically earn more than women?
What will be an ideal response?